Excel formula for calculating NZ tax paid on annual income.

gistfile1.txt

=IF(B2<=14000,SUM(B2*10.5%),IF(B2<=48000,SUM(B2-14000)*17.5%+1470,IF(B2<=70000,SUM(B2-48000)*30%+7420,IF(B2>=70001,SUM(B2-70000)*33%+14020))))

A modified version of @inspiredearth's formula:
This includes ACC levy of 1.53% and 3% Kiwisaver.
=(($A1-SUMPRODUCT(--($A1>={1;14000;48000;70000;180000}),($A1-{0;14001;48001;70001;180001}),{0.105;0.07;0.125;0.03;0.06}))-($A1*(0.0153+0.03))

Hi all,
Just created a Google Sheet to help calculate the tax, also the ability to include deductions for Kiwisaver and ACC levy. You can add your custom values to the boxes in green.

https://docs.google.com/spreadsheets/d/1hPtxMEZgM4t4Z2_cyE-G05yDzwvaSKH_f3U48-s9B0o/edit?usp=sharing

Hi guys, thanks for this.

I found that the correct formula to calculate the edge case of exactly $14,000 etc needs to be as follows;

=SUMPRODUCT(--(A1>={0;14000;48000;70000;180000}),(A1-{0;14000;48000;70000;180000}),{0.105;0.07;0.125;0.03;0.06})

Thanks @LightspeedNZ, I've got an update for FY25 which tests out pretty well against IRD website based on:

From	To	Rate
0	$14,000.00	10.50%
$14,001.00	$15,600.00	12.82%
$15,601.00	$48,000.00	17.50%
$48,001.00	$53,500.00	21.64%
$53,501.00	$70,000.00	30.00%
$70,001.00	$78,100.00	30.99%
$78,101.00	$180,000.00	33.00%
$180,001 and over		39.00%

=SUMPRODUCT(--(A1>={0;14000;15600;48000;53500;70000;78100;180000}),(A1-{0;14000;15600;48000;53500;70000;78100;180000}),{0.105;0.0232;0.0468;0.0414;0.0836;0.0099;0.0201;0.06})

From 1st April 2025 with the following tax rates:

From	To	Rate
0	$15,600.00	10.50%
$15,601.00	$53,500.00	17.50%
$53,501.00	$78,100.00	30.00%
$78,101.00	$180,000.00	33.00%
$180,001 and over		39.00%

Gives the following formula (untested):

=SUMPRODUCT(--(A1>={0;15600;53500;78100;180000}),(A1-{0;15600;53500;78100;180000}),{0.105;0.07;0.125;0.03;0.06})

Here's a slightly simpler version to prevent the problem mentioned by @LightspeedNZ:

=SUMPRODUCT((A1>{1;14000;48000;70000;180000})*(A1-{0;14000;48000;70000;180000}),{0.105;0.07;0.125;0.03;0.06})

Lambda limits you to one cell reference, which is a time saver:
=LAMBDA(x,SUMPRODUCT((x>{1;14000;48000;70000;180000})*(x-{0;14000;48000;70000;180000}),{0.105;0.07;0.125;0.03;0.06}))(A1)

Just to add that most PAYE calculators online are incorrectly using the formula for 1st April 2025 already. If you are calculating PAYE or total tax you may need to include the ACC Earners Levy of $2,276.53 pa.

Can the LAMDA formula be converted for monthly tax? @spmp @LightspeedNZ

Removed as thresholds are incorrect and will make result inaccurate.

I found the above formula for Google sheets wasn't correct. I've created custom functions for calculating FY25 and FY26 nz income tax in google sheets and published it on this gist: https://gist.github.com/benjamin-brady/e0b8f8737aa935e5b4d823369b7c0c31

Lambda function for FY25 blended rates:

=LAMBDA(x,SUMPRODUCT((x>{0,14000,15600,48000,53500,70000,78100,180000})*(x-{0,14000,15600,48000,53500,70000,78100,180000}),{0.105,0.0232,0.0468,0.0414,0.0836,0.0099,0.0201,0.06}))(A1)